Question 1

What is the sales tax on a car purchased in Minnesota?

Accepted Answer

The sales tax on a car purchased in Minnesota is 6.875%. However, this does not include any potential local or county taxes. The average local tax rate in Minnesota is 0.516%, which brings the total average rate to 7.016%.

Question 2

Do I have to pay sales tax on a used car in Minnesota?

Accepted Answer

The sales tax on a used vehicle is 6.875%. As an example, if you are purchasing a used truck for $40,000, then you will pay an additional $2,750 in car sales tax.

Question 3

Which county in Minnesota has the lowest tax?

Accepted Answer

The Minnesota counties with the lowest tax are Big Stone, Cottonwood, Lac Qui Parle, Lincoln, Stevens, and Traverse Counties with a rate of 6.875%.

Question 4

Which county in Minnesota has the highest tax?

Accepted Answer

The Minnesota counties with the highest tax are Hennepin and Ramsey Counties at 9,025%.

Question 5

Do I have to pay sales tax on a gifted car in Minnesota?

Accepted Answer

You do not have to pay sales tax if the vehicle is gifted to you from a spouse, parent, child, grandparent, or grandchild.

Question 6

How much is registration in Minnesota?

Accepted Answer

In Minnesota, the vehicle registration tax varies and includes a filing fee of $8 and a technology surcharge of $2.25. Additionally, a wheelage tax ranging from $10 to $20 may apply depending on the county. The registration tax for passenger vehicles is based on the car's value and age, with a minimum tax for vehicles older than 10 years set at $35. More detailed information on the registration tax can be found on the Minnesota Department of Public Safety website.

Question 7

Does a trade-in reduce sales tax in Minnesota?

Accepted Answer

A trade-in can reduce the amount of sales tax that you would pay. In other words, be sure to subtract the trade-in amount from the car price before calculating sales tax.

Question 8

How can I avoid paying sales tax in Minnesota?

Accepted Answer

You do not have to pay sales tax if you are a disabled veteran; you inherited the vehicle; you received the vehicle from an individual’s revocable trust; you received the vehicle in a divorce; or you received the vehicle as a gift from a spouse, parent, child, grandparent, or grandchild.

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